Banking Awareness Questions for IBPS PO and Clerk Mains 2017

Q1. Securities Appellate Tribunal is a/an __________ established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992

(a) Constitutional body

(b) Advisory body

(c) Non-statutory body

(d) Statutory body

(e) None of the given options is true

S1. Ans.(d)

Sol. Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.

Q2. Which of the following is a function of SEBI?

(a) to approve by-laws of stock exchanges.

(b) inspect the books of accounts of financial intermediaries.

(c) to require the stock exchange to amend their by-laws.

(d) compel certain companies to list their shares in one or more stock exchanges.

(e) All of the Above

S2. Ans.(e)

Sol. Function of SEBI:

1. To approve by-laws of stock exchanges.

2. Inspect the books of accounts of financial intermediaries.

3. To require the stock exchange to amend their by-laws.

4. Compel certain companies to list their shares in one or more stock exchanges.

Q3. Which of the following services is NOT provided by the post offices in India?

(a) Savings Bank Scheme

(b) Retailing of Mutual Funds

(c) Sale of stamp Papers (Judicial)

(d) Life Insurance cover

(e) Issuance of Demand Drafts

S3. Ans.(e)

Sol. Issuance of Demand Drafts is NOT provided by the post offices in India.

Q4. Credit rating is _______

(a) is used to rate the borrowers while giving advances

(b) is used to work out the performance of the employees

(c) is used to calculate the number of excellent audits rated branches

(d) is not used in any bank

(e) is necessary before giving promotion to employees

S4. Ans.(a)

Sol. Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. An assessment of the creditworthiness of a borrower with respect to a particular debt or financial obligation.

Q5. Currency swap is an instrument to manage _______

(a) Interest Rate Risk

(b) Currency Risk

(c) Cash flows in different countries

(d) All of the Above

(e) None of the given options is true

S5. Ans.(c)

Sol. A currency swap (or a cross currency swap) is a foreign exchange derivative between two institutions to exchange the principal and/or interest payments of a loan in one currency for equivalent amounts, in net present value terms, in another currency.

Q6. NSDL is the first and largest depository in India, established in-

(a) August 2003

(b) August 1991

(c) August 1989

(d) August 1999

(e) August 1996

S6. Ans.(e)

Sol. NSDL, the first and largest depository in India, established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market.

Q7. A Public Provident Fund (PPF) account holder can deposit a maximum of-

(a) 1.5 Lakhs

(b) 2.5 Lakhs

(c) 1.0 Lakh

(d) 3.5 Lakhs

(e) 5.0 Lakhs

S7. Ans.(a)

Sol. A Public Provident Fund (PPF) account holder can deposit a maximum of Rs 1.5 lakhs in his/her PPF account.

Q8. Where is the headquarters of Paschim Banga Gramin Bank?

(a) Howrah, West Bengal

(b) Nagpur, Maharashtra

(c) Dumka, Jharkhand

(d) Bolangir, Odisha

(e) Bathinda, Punjab

S8. Ans.(a)

Sol. The headquarters of Paschim Banga Gramin Bank is Howrah, West Bengal.

Q9. National Securities Depository Limited is an Indian central securities depository based in _______

(a) New Delhi

(b) Chennai

(c) Hyderabad

(d) Mumbai

(e) Bengaluru

S9. Ans.(d)

Sol. National Securities Depository Limited is an Indian central securities depository based in Mumbai.

Q10. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in-

(a) 1999

(b) 1995

(c) 1991

(d) 1987

(e) 1982

S10. Ans.(d)

Sol. The Board of experts named the Board for Industrial and Financial Reconstruction (BIFR) was set up in January, 1987 and functional with effect from 15th May 1987. The Appellate Authority for Industrial and Financial Reconstruction (AAIRFR) was constituted in April 1987. Government companies were brought under the purview of SICA in 1991 when extensive changes were made in the Act including, inter-alia, changes in the criteria for determining industrial sickness.

Q11. On 07th October 2015, Ujjivan Financial Services Private Ltd has received an in-principle approval from the RBI to set up a small finance bank. Where is headquarter of Ujjivan Financial Services Private Ltd small finance bank?

(a) Kochin

(b) Jaipur

(c) Mumbai

(d) Chennai

(e) Bengaluru

S11. Ans.(e)

Sol. On October 7, 2015, Ujjivan Financial Services Private Ltd has received an in-principle approval from the RBI to set up a small finance bank ("SFB"). Bengaluru, Karnataka is head office of Ujjivan Financial Services Private Ltd.

Q12. Name India's first credit rating agency, is incorporated, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions.

(a) CRISIL

(b) CIBIL

(c) ICRA

(d) All of the above

(e) None of the given options is true

S12. Ans.(a)

Sol. On 29th January 1987: CRISIL, India's first credit rating agency, is incorporated, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions. Mr. N Vaghul and Mr. Pradip Shah are CRISIL's first Chairman and Managing Director, respectively.

Q13. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in _________ by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional Investment Information and Credit Rating Agency.

(a) 2004

(b) 1999

(c) 1995

(d) 1987

(e) 1991

S13. Ans.(e)

Sol. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.

Q14. The largest shareholder of a Public Sector Banks (PSBs) is?

(a) RBI

(b) Government of India

(c) NABARD

(d) All of the Above

(e) Finance Ministry

S14. Ans.(b)

Sol. Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a government. The shares of these banks are listed on stock exchanges.